Get to know the vital terms of Logistics and Supply Chain Management.
The charges include demurrage, detention, and fees associated with the warehouse and these are typical in the logistics and shipping business when dealing with freight. These fees are charged by the carrier in instances where there is a delay in the process of picking up containers or shipments or returning the same. This is incurred after a free allowance time which is usually availed to the receiver or the shipper to help them avoid charges.
What Is Demurrage and Detention Charges?
Demurrage Fees: These fees apply to Full Container Load (FCL) shipments and are paid when a container stays at the port or terminal and has not been collected after the free time it is allowed to stay.
Warehouse Fees: For LCL or air shipments, storage charges are incurred when the goods are placed in a warehouse after free days.
Detention Fees: Detention fee is charged when the container is picked up but the empty container is not returned within the agreed time.
Tips to Avoid Extra Costs
However, these fees are some of the charges that are always compulsory and are not flexible. However, it is possible to minimize or prevent it by making sure that containers are collected on time and returned as soon as possible. This should ensure a contingency plan, which will prevent any need for further scheduling and the associated charges.
Conclusion
Demurrage, detention, and warehouse fees are common in freight forwarding as they ensure that goods and containers are in motion as much as possible. It is crucial to learn about these costs and how one can avoid extra expenses, to ensure that your shipping strategy runs as smoothly as possible.